New York AG Goes After Post-Hurricane Gas Goons

Prior to Hurricane Sandy, a gallon of regular gas at the Mobil station at 40-40 Crescent Street in Long Island City was $3.89. That price was even posted on the station's sign following the storm. When the storm came and went, that sign remained -- as the line for gas stretched for three city blocks.

Magically, when customers got to the pump -- after waiting in the absurdly long line -- the price went up to $4.89. If you were paying with a credit card, the price was $4.99 a gallon.

Only, it wasn't magic that made the price jump a dollar in under an hour, it was hurricane profiteers gouging prices to take advantage of desperate consumers -- and New York Attorney General Eric Schneiderman ain't having it.

Schneiderman yesterday announced his intent to "commence enforcement
proceedings" against 13 gas stations his office says violated the
state's price gouging laws. He says these cases are just the first of
what's expected to be a series of "enforcement proceedings" against
post-hurricane price gougers.

"Our office has zero tolerance for price gouging and we are taking
action to send a message that ripping off New Yorkers is against the
law," Schneiderman says. "Today's action is the first
in a series of steps my office will take as we continue to actively
investigate the hundreds of complaints we've received from consumers of
businesses preying on victims of Hurricane Sandy. We will do everything
we can to stop unscrupulous individuals from taking advantage of New
Yorkers trying to rebuild their lives."

New York's price-gouging law prohibits merchants from taking unfair advantage of consumers by selling
goods or services for an "unconscionably excessive price" during an
"abnormal disruption of the market."

A crippling hurricane certainly counts as an "abnormal disruption of the market."

Schneiderman
says the investigation was launched after his office received hundreds
of complaints from people who claim they got ripped off at a gas
station. One of those consumers got gas at the Express mart station
located at 1000 Rte 9 in Lindenhurst, where he reported that there were
no road signs displaying gas prices, just a plywood sign next to the
road announcing the gas station was only accepting
cash. When he got to the pump, the price was $4.99, which he was forced
to pay out of desperation.

The AG's Office says that if you believe you are a victim of price gouging or a post-hurricane
scam, contact the Attorney General's Consumer Helpline at 800-771-7755
or find a complaint form online at: www.ag.ny.gov

The thirteen gas stations busted in Schneiderman's investigation are as follows: